> Yeah that’s induced demand and it’s a good thing for the economy.

No, it's not good. It leads to nothing but urban decay.

That's how you get Tokyo with a crazy price bubble, while beautiful traditional houses decay into dust just 3-4 hours away.

> The rents are supposed to reduce only temporarily.

Except that they don't even decrease. If your population is growing, so is your rent. And it doesn't matter how much you build (for large enough cities).

Again, this is simple observable truth.

> The goal is to increase land utility. Building houses helps with that cause.

Yeah. The goal is social engineering to force people into shoebox-sized apartments, to be ruled by their benevolent masters.

That's also why we're getting a global pushback against it.